Cautious welcome for Chancellor’s £2bn boost to Scots economy

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Cut in VAT and boost for capital expenditure welcomed, but concern over efficiency savings

The Chancellor’s statement will mean a £2billion boost overall for the Scottish economy and will also free up about £260million in accelerated capital spending for schools, hospitals and roads north of the Border, government ministers said last night.

SNP ministers poured cold water on the claims of a big budget injection for Scotland and said that the drive for £5billion of efficiency savings across government in Britain - outlined by Alistair Darling - could mean a cut of about £500 million in the Holyrood budget by 2010/11.

However, John Swinney, the Scottish government’s Finance Secretary, welcomed changes that would bring forward capital